fletcher analysts briefing pipelines division overview · 2020. 9. 17. · page 6 distribution...
TRANSCRIPT
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Page 1
Fletcher Analysts Briefing
Pipelines Division Overview
21 May 2013
http://www.google.com.au/imgres?imgurl=http://upload.ecvv.com/upload/Product/20097/China_Ductile_Iron_Pipe20097131706298.JPG&imgrefurl=http://www.ecvv.com/product/1904854.html&usg=__EbvVPO7Euk78VyGtHx59ByvJiEU=&h=1106&w=1015&sz=97&hl=en&start=9&zoom=1&tbnid=PMkSgZmgqlocsM:&tbnh=150&tbnw=138&ei=M9ZqTfu6BILsvQOCm8TkAg&prev=/images?q=ductile+iron+pipe&um=1&hl=en&sa=N&rlz=1G1GGLQ_ENAU391&tbs=isch:1&um=1&itbs=1http://www.iplex.com.au/iplex.php?page=lib&lib=3
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Business: Plastic Pipe & Fittings Systems
Plastic pipe and fittings systems for distribution of Water,
Gas & Conduits for Telecommunications & Electrical
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Page 3
Locations: Australia and New Zealand
PVC Factory x5
PVC Fittings Factory x1
PE Factory x5
Aust. Locations x 16
Warehouse x4
Metals Factory x1
Northern
Territory
South
Australia
New South
Wales
Victoria
Tasmania
Brisbane
Townsville
Albury
Melbourne
Adelaide
Darwin
Toowoomba
Sydney
Queensland Western
Australia
Perth
Black Coal Basin
(CSG)
Innisfail
Launceston
Christchurch
Palmerston
North
New Zealand
Iplex NZ x2
NZ Locations
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Page 4
Factory Layouts
PVC Pipe Plant – Reservoir VIC
PE Plant – Welshpool WA
Adelaide PVC Fittings Plant
Palmerston North, NZ Plant
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Page 5
Product Overview
PVC Pipe and Fittings
• Higher pressure ratings – diameters up to 600mm
• Joined using rubber-ring sealed fittings
• Lower cost raw material than PE
PE Pipe and Fittings
• Lower pressure ratings - diameters up to 2,000mm
• Joined by a butt-weld process or electro-fusion fittings
• More robust - better in areas with unstable/moving ground
Other Products
• Ductile Iron Pipe and Fittings (manufactured and purchased)
• Glass Reinforced Pipe
• BlackMAX (Polybutylene)
• Plastic Hot and Cold Water Systems (K1, K2 and Pro-fit)
http://www.google.com.au/imgres?imgurl=http://upload.ecvv.com/upload/Product/20097/China_Ductile_Iron_Pipe20097131706298.JPG&imgrefurl=http://www.ecvv.com/product/1904854.html&usg=__EbvVPO7Euk78VyGtHx59ByvJiEU=&h=1106&w=1015&sz=97&hl=en&start=9&zoom=1&tbnid=PMkSgZmgqlocsM:&tbnh=150&tbnw=138&ei=M9ZqTfu6BILsvQOCm8TkAg&prev=/images?q=ductile+iron+pipe&um=1&hl=en&sa=N&rlz=1G1GGLQ_ENAU391&tbs=isch:1&um=1&itbs=1http://www.iplex.com.au/iplex.php?page=lib&lib=3
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Distribution Capability
• National coverage
• 110 local fleet & 40 semi trailers loaded per day.
• We ship pipe from 1m to 25m length (18mm to 2metre diameter), coils,
metals, fittings
• RF technology for pick-pack
• Truck route planning tools used at major sites
• Order tracking and E-pod
• National & State Civil call centres with ~14,500 inbound calls and ~10,000
outbound calls per month
• Merchant deliveries operate under an agreed delivery frequency schedule
• We also offer a Next Day delivery schedule for contractors (incl early AM)
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Page 7
Markets Trends - Australia
CSG
Mining
Telco &
Energy
Rural
Civil
Building/
Plumbing 0
50
100
150
200
250
300
350
400
450
500
550
600
2012 2011 2010
A$M
Pipelines Australia
Base market conditions in Australia are trending toward levels lower than FY10 – Mining drop the most
pronounced
• Base market conditions weak – trending down over the three year period
• Our Plumbing sales have deteriorated 10% CAGR over the last three years
• Mining drop in F13 pronounced
• CSG business in F12 and F13 has proven a real success - helped mitigate a weaker base
business
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Page 8
Markets Trends - New Zealand
Export
Telco & Energy
Rural
Civil
Building/
Plumbing
NZ$M
Pipelines New Zealand
Strong economic conditions in NZ and the Christchurch rebuild activity are both driving solid sales growth
• Rural sector strengthening - partly off some market growth and also due to Iplex business
initiatives
• Civil performance very strong - driven by improved Council capital programs, Christchurch rebuild &
an extension to our large bore PE capacity
• After three flat years between F10-F12 Plumbing activity is seeing modest lift in FY13
0
10
20
30
40
50
60
70
80
90
2012 2011 2010
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Key Stories Emerging from Business Results
• A subdued Australian economy is impacting our base market sectors:
– Spare Industry capacity and annual cost escalations requires the forming of several business
‘reset’ initiatives in order to drive profit growth in flat markets
• CSG demand has provided a strong earnings opportunity for Iplex:
– CSG volumes expected to be steady over the medium term - but dip next financial year due to the
current status of various customers CSG development projects
• New Zealand is performing well in a strengthening economy:
– Civil & Rural are key strength areas, with ChCh recovery also starting to come through
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Page 10
The CSG Demand Story
CSG Developer Distance from:
Toowoomba
Brisbane Townsville Albury
Santos 360km 500km 1,000km 1,350km
QGC 160km 300km 1,200km 1,450km
Origin 210km 350km 1,150km 1,500km
Arrow 60km 200km 1,300km 1,375km
Avg
~200km ~350km ~1,200km ~1,400km
Albury
Brisbane
Melbourne
Townsville
QUEENSLAND
NEW SOUTH
WALES
Sydney
Toowoomba
Surat Basin (CSG)
1
2 1
2
1
2 1
2
Miles Roma
Toowoomba
Dalby
Brisbane
Bowen Basin (Coal)
The emerging CSG market is generating immediate demand in QLD with NSW evolving
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The CSG Process
• Gas extracted by drilling into coal seams
• Well depth generally 400-700m meters
• Both gas and water is released
• New well head in field at Santos
• Up to 500-1,000 in typical gas field
• Well life up to 5-10 years
• PE Pipe used to connect wells
• Gas transported to field compression stations
• Gas then transported through steel pipelines to LNG plants
Gas Extraction Process
Gas Well Head
PE Pipe Being Laid
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Iplex Expansion for CSG
• Produced 30,000T in FY12 and Forecast 35,000 in FY13
• Initial production at Albury - now moved to new Toowoomba plant
• Toowoomba plant built on time & on budget (A$12M + site lease)
• Installed new technologies improve energy efficiency and outputs
• Producing above rated throughputs
• Quality demands and expectations beyond anything done before
• Every pipe and weld is tested with new technologies both post production and infield
• Iplex have invested in field and technical capabilities
First Loads ex-Toowoomba
Toowoomba Plant
Iplex CSG Field Services
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Page 13
Strategy & Initiatives
Vision
Number 1 supplier in all our major markets through a
lowest delivered cost position and targeted customer value creation
Closer Customer
Relationships
Merchant
Sector
Performance
Manufacturing
Capability
Order
Fulfillment
Performance